HomeMy WebLinkAbout2022-05-18; Carlsbad Tourism Business Improvement District; Resolution 2022-8DocuSign Envelope ID: 2BA75F69-8BO4-4OE5-8892-0680583F1312
RESOLUTION NO. 2022-8
A RESOLUTION OF THE CARLSBAD TOURISM BUSINESS IMPROVEMENT
DISTRICT ADVISORY BOARD APPROVING THE ANNUAL REPORT FOR
FISCAL YEAR 2022-23
EXHIBIT 1
WHEREAS, the Carlsbad Tourism Business Improvement District {CTBID) was formed in
accordance with the California Government Code Pa rking and Business Improvement Area Law
of 1989 {California Streets and Highways Code Section 36500 et. seq. ); and
WHEREAS, California Streets and Highways Code Section 36533 requires the CTBID
Advisory Board to present an annual report to the City Council for its review and approval for
each fiscal year for which assessments are to be levied and collected to pay the cost for the
improvements and activities described in the report; and
WHEREAS, an Annual Report has been prepared for the 2022-23 fiscal year, and
WHEREAS, the CTBID Advisory Board wishes to approve the Annual Report; and
WHEREAS, the CTBID Advisory Board wishes to submit the report to the City Council for
approval.
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Tourism Business Improvement
District Advisory Board as follows:
1. That the above recitations are true and correct.
2. That the Annual Report shown at Exhibit A is approved in its entirety.
3. That the Annual Report will be presented to the City Council for its approval at
a June 2022 meeting.
PASSED, APPROVED, AND ADOPTED at a special meeting of the Board of Directors of the
Ca rlsbad Tourism Bu siness Improvement District on this 18 day of M ay 2022, by the following
vote to wit:
AYES: Stripe, Canepa, Rauch, Gray, Zupanski, Chapin
NAYS: n/a
ABSENT: Becerra
ABSTAIN: n/a
DocuSign Envelope ID: 2BA75F69-8BD4-4DE5-8892-0680583F1312
EXHIBIT 1
TIM STRIPE, Chair
FAVIOLA MEDINA, City Clerk Services Manager
ATTACHMENT A
Carlsbad Tourism and Business Improvement District (CTBID}
2022-2023 Annual Report
Method of Assessment: The CTBID includes all hotel businesses located within the
CTBID boundaries. The assessment shall be levied on all hotel businesses, existing and
future, within the City of Carlsbad based upon a rate of 2% of gross short-term room
revenue for all transient occupancies as defined in section 3.12.020(7) of the Carlsbad
Municipal Code. The amount of assessment shall be separately stated from the amount
of the rent and other taxes charged, and each transient shall receive a receipt for
payment from the operator. The assessment will be remitted monthly, based on 2% of
gross short-term room revenues for the previous month.
Assessment Funding Purpose: To administer marketing and visitor programs to
promote the City of Carlsbad as a tourism visitor destination and to fund projects,
programs, and activities, including appropriate administrative charges that benefit
hotels within the boundaries of the District.
2021-22 Work Plan: Last fiscal year, the CTBID assessment generated approximately
$5,600,000 in revenue. The CTBID contracted with Carlsbad Convention and Visitors
Bureau (dba Visit Carlsbad) to provide tourism marketing services for Carlsbad. In
addition, $80,000 in grants were awarded to fund events to increase the overnight stays
in Carlsbad hotels.
The CTBID 2022-23 budget includes a funding level of $5,114,000 for Visit Carlsbad. This
increased funding level is the result of the increase in assessment revenue due to the
modification of the assessment rate from $1 per room night to 2% of gross short-term
room revenue as well as a post pandemic rebound in the tourism economy. The
services provided by Visit Carlsbad will focus on marketing efforts. The majority of this
will be done by through promotional programs and group sa les. Visit Carlsbad also has
plans to hire a Finance and Administration Manager, Business Development
Coordinator, Marketing/ Communications Coordinator, and an administrative assistant
during Fiscal Year 2022-23. The CEO will help develop a business plan for Visit
Carlsbad's future. The Visit Carlsbad Board will also review the CTBID grant applicants,
for which there is $1,500,000 allocated this year, and make the funding
recommendations to the CTBID Board.
Detail of the 2022-23 budget is shown on the following page.
2022-2~3~Recommended CTBID Budget
2019-20 2020-21 2021-22 2021-22 Actuals Projected Recommended
Program Areas Description Actual Actual Budget as of 2/28/22 2021 -22 Actuals 2022-23 Budget
Carryover Fund Balance Fund Balance $640,318 $61 7,139 $1,840,227 1,840,227 1,840,227 4,173,227
Revenues:
CTBID Assessment
2% of Room Revenue (was $1 per room night prior to 11/1/20) 1,088,860 1,867,248 3,600,000 3,938,526 5,600,000 5,700,000
Interest Earnings 21 ,384 17,327
Total Estimated Revenues 1,110,244 1,884,575 3,600,000 3,938,526 5,600,000 5,700,000
Ex12enditures:
2% of CTBID assessment revenue, for collection of
2% Admin. Fee -City CTBID assessment and accounting for CTBID 21 ,045 37,344 72,000 72,401 112,000 114,000
CCVB Payment To operate visitor center, market and promote Carlsbad 1,040,326 576,425 3,000,000 1,222,080 3,000,000 5,114,170
Staff support Staff support to the CTBID 20,438 17,718 50,000 10,996 25,000 50,000
Professional Services Civitas Contract 32,960 50,000 50,000
CTBID Grants Grant program established by CTBID Board 18,654 30,000 100,000 80,000 1,500,000
Total Expenses 1,133,423 661,487 3,272,000 1,305,477 3,267,000 6,778,170
Ending Fund Balance Contingency for Revenue shortfall $617,139 $1 ,840,227 $2,168,227 $4,473,276 4,173,227 3,095,057